Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in Ulta Beauty (NASDAQ: ULTA) in connection to alleged violations of securities laws by ULTA. Fitapelli Kurta is interested in speaking to investors who have complaints regarding investments made in Ulta Beauty from March 30, 2017 until February 23, 2018.
The class action complaint specifically alleges that during the period in question, ULTA might have provided false and/or misleading material information, and/or failed to disclose adverse material information, namely: that the company was, on a large scale, repackaging cosmetic products that had been returned, restocking them alongside unsold products, and selling them at the full retail price; and that consequently the company’s statements to the public during the relevant period were false and misleading. When news outlets reported on February 9, 2018 that a class action lawsuit had been filed against the company, alleging these “widespread and surreptitious” activities, which the complaint stated was confirmed by numerous current and former employees, the company’s share price fell more than 4.1%, or $9.07, closing at $209.48/share on February 12, 2018. When CBS News issued a report on February 23, 2018, about a former employee who said “felt pressured to resell used products” and supporting other allegations in the complaint, the company’s share price fell about 4%, or $8.18/share, closing at $198.93 on February 26, 2018. The complaint alleges that when true facts emerged, investors suffered losses.
According to the company’s website, Ulta Beauty is “the largest beauty retailer in the United States and the premier beauty destination for cosmetics, fragrance, skin care products, hair care products and salon services.” The company opened its first store in 1990, and today sells more than 20,000 products from roughly 500 beauty brands, both established and emerging, at more than 1,000 retail locations across the United States. The company trades on the Nasdaq exchange under the symbol ULTA.
A class action lawsuit has already been filed in connection with Ulta Beauty. If you wish to serve as lead plaintiff in the ULTA lawsuit, you must move the Court no later than May 1, 2018. If you wish to join the litigation, please contact Marc Fitapelli at 212-658-1501 or Jonathan Kurta at 212-658-1502. There is no cost or obligation to you and your ability to share in any recovery does not require that you serve as a lead plaintiff.